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China Becomes the Largest Foreign Investor in U.S. Real Estate Market

Well-known Chinese news site Tencent Financial News recently reported, based on a study which led to the conclusion, that China has become the largest foreign investor in the U.S. real estate market, ahead of Canada, which is the second. The Asia Society and the Rosen Consulting Group conducted the research. They found that, in the past five years, Chinese buyers have rushed in with over one hundred billion dollars to acquire U.S. real estate in order to invest their money in safe overseas assets. Although Beijing has recently been trying to block capital outflows, the study estimated that the investment level will double over the next five years to around US$218 billion. The research also discovered that Chinese real estate investments covered a wide range of real estate types including both commercial and residential. The researchers were confident that the actual dollar amount must be higher since the transactions done by proxy companies and trusts may have hidden the source of the funds. Most of the Chinese buyers were found in expensive markets such as New York, Los Angeles, San Francisco and Seattle. However, Chicago, Miami, and Las Vegas are picking up more and more business. 

Source: Tencent Financial News, May 18, 2016
http://finance.qq.com/a/20160518/018001.htm

Global Times: Zhang Dejiang Met with HK Opposition Members

Global Times recently published an editorial discussing the Hong Kong trip of Zhang Dejiang, who is the Standing Committee Chairman of China’s National People’s Congress. Zhang’s itinerary included a meeting with the opposition members of the Hong Kong Legislative Council. This was the first time the HK Opposition has had a direct face-to-face meeting with a member of the top Communist leadership from the Mainland. The critical message from the Opposition members was their strong dissatisfaction with the sitting Chief Executive Leung Chun-ying; They asked very clearly that the central government replace him. Another topic was to allow Opposition members to enter the Mainland. The whole meeting was calm and peaceful, which was unusual. The Global Times editorial also, unusually, positioned the HK Opposition as “insiders” of the HK established political system. The editorial further commented that the Opposition in the Legislative Council should be considered a part of the “special establishment camp,” which is more welcome as compared to those who ignore the Hong Kong Basic Law. 
Source: Global Times, May 19, 2016
http://opinion.huanqiu.com/editorial/2016-05/8948562.html

Qiushi: Dealing with Arguments against the Anti-corruption Campaign

Critics of China’s anti-corruption campaign have offered numerous arguments in favor of stopping the campaign. On May 15, 2015, Qiushi published a commentary rebutting critics’ remarks opposing the campaign. 

According to the commentary, as the anti-corruption campaign has progressed, “there have been some absurd arguments such as, ‘Anti-Corruption damages the image of the Communist Party.’ Those who hold this view believe that, as more corrupt officials are under investigation and more scandals are exposed, the public may develop a "no good people in the Party" feeling, causing people to question our Party. It may also result in the international community seeing the Party with an adverse view, thus damaging the Party’s reputation and image. This argument appears to protect the Party, but it actually harbors resentment [against the anti-corruption campaign], in an attempt to negate it and slow down the anti-corruption efforts. We must, therefore, firmly clarify our position.” 
The commentary dismissed those arguments against the anti-corruption campaign, stating that the "heavy blows" and "strong medicine" used in the anti-corruption campaign against a large number of leaders and the senior leaders in particular, has shown the public the firm opposition against corruption and the strong determination to build clean politics. The anti-corruption campaign has won applause both inside and outside of the Party and both domestically and abroad.
Source: Qiushi, May 15, 2016 
http://www.qstheory.cn/dukan/qs/2016-05/15/c_1118850764.htm

Xi Jinping: Standardizing Police Operations

On May 20, 2016, Xi Jinping chaired the 24th Meeting of the Communist Party’s Central Leading Group for Deepening Overall Reform and delivered an important speech. At the meeting the “Opinion on Deepening the Standardization of Public Security Law Enforcement” was reviewed and passed. 

Xi emphasized that efforts must be spent to perfect the mechanism for police law enforcement to exercise power, and to build a complete law enforcement system, case system, and management system. He also stressed the need to achieve the police personnel’s professionalism, standardize police behavior, systemize the management of police operations and document the flow and process of the police in action. He stated that the police must be under strict supervision, and any outstanding problems must be solved, so that people can see fairness and justice in society through every police activity and every case that is handled. 
Source: Xinhua, May 20, 2016 
http://news.xinhuanet.com/politics/2016-05/20/c_1118904441.htm

Xinhua Commentary on the U.S. Political System and Press Freedom

Xinhua carried an article on the recent Democracy Spring in Washington D.C. While over one thousand people were arrested, the lack of media coverage of the incident was notable. The article attacked the defects in the U.S. system of democracy. It said these defects were the cause of some recent events including, “Occupy Wall Street,” “Black Life Matters,” and the “Democracy Spring.” The article then mentioned that the press freedom in the U.S. often misleads the people. It mentioned that the heated debates seen on television have overshadowed two underlining facts: the media must follow the requirements of their financial supporters and they also must do their best to attract an audience. Lastly the article claimed that the U.S. always attacks other countries for violating media guidelines but it has often ignored its own issues; the U.S. media often use a double standard then they attack other countries for violating human rights issues when the media in the U.S. does not even speak up for its own people. It concluded by quoting an article from the New York Times titled, “The End of American Idealism” and raised the question that, when the U.S. faces so many issues, how long can American Idealism really last?

Source: Xinhua, May 23, 2016
http://news.xinhuanet.com/world/2016-05/23/c_129006242_3.htm

SASAC to Find solutions for SOEs That Have Financial Trouble

Recently, Xinhua reported on a news conference that the State-owned Assets Supervision and Administration Commission of the State Council (SASAC) held. According to Xinhua, 12 SOEs went through restructuring in 2015. More SOEs will go through the merger and acquisition process in 2016. The article also said that SASAC is determined to spend the next three years finding a solution for 345 SOEs that are in financial trouble. It will also bring down the production volume in the coal mine and steel industries by 10 percent in the next two years. Another proposal to improve the profitability and efficiency of the SOEs is to reduce the number of management levels to no more than 3 or 4 levels while striving for lean and efficient management during the upcoming SOE reforms.

Source: Xinhua, May 23, 2016
http://news.xinhuanet.com/fortune/2016-05/23/c_129006195.htm

A Record Number of College Graduates Expected in 2016

According to a Xinhua article, there will be 7.6 million college graduates in China this summer, a record high in history. The article said that these college graduates have lowered their expectations on the pay they will receive. The average monthly salary that these college graduates hope to make is below 5,000 yuan (US$764). Some of them expressed a willingness just to find a job first and then to be able to switch to the field of their major later. Many of them feel that there is a large gap between their expectations and reality. At the same time, their employers do not have a good understanding of their skills. The article also used statistics that found that 29.5 percent of the college graduates will find jobs in IT, the Internet, telecommunications and the electronics field; 16.1 percent will be in manufacturing and the auto industries; and 13.7 percent will be in the finance, banking, investment, and insurance fields.

Source: Xinhua, May 23, 2016
http://news.xinhuanet.com/politics/2016-05/23/c_129006028.htm

Political Rivalry in China Part 2 – “Should the State Media Be Loyal to the Party?”

Part 2: “Should the State Media Be Loyal to the Party?”

The Preface and Part 1 of this series explained that former Chinese Communist Party (CCP) leader Jiang Zemin left two legacies to China: a system of corruption and the persecution of Falun Gong. To prevent being charged and held accountable, Jiang and his followers tried to hold onto their power after Jiang retired. They even plotted coups against the current leader Xi Jinping, who is not part of Jiang’s faction.

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